Gifting

Discussion in 'Accounting and Tax' started by Collector, 19th Feb, 2013.

  1. Collector

    Collector Member

    Joined:
    11th Dec, 2008
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    Location:
    Sydney
    My mother in law wants to help us out and give/gift us $80,000.

    I have researched via google and there is centerlink implications relating to claiming the old age pension if she does.

    However she is still working full time and would not qualify for the age pension when/if she does.

    She was also concerned that the government (department) would track the payment as it is over $10,000.

    Looking for advise to ensure what she wants to do is ok and wont have any negative effect to her.
     
  2. Ed Barton

    Ed Barton Advance Australia fair

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    Brisneyland
    If she won't qualify for the pension what possible other effect is there?

    Is she planning to give you the money in cash (notes)? - Is she a drug or arms dealer?
     
  3. Terry_w

    Terry_w Member

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    19th Mar, 2012
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    Location:
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    Several Issues

    1. MIL later goes bankrupt. Gift can be clawed back.

    2. MIL dies. Disputes arise over whether that was a gift of loan
    2a. MIL dies. Money could possibly be clawed back if someone makes a family provision claim.

    3. Divorce. You divorce. You get a share of the money if it was a gift. If a loan MIL gets it back.

    4. Arguments. Years down the track MIL wants the money back.

    5. Centrelink. MIL may not think she needs the pension, but circumstances may change. Centrelink will treat her as still having the money and earning an income from it for 5 years

    6. Asset protection if you/spouse go bankrupt. If it was a loan MIL could join creditors and get some money back.

    7. Government tracking??? Unless it was cash it would be a transaction which is recorded. Unless it is the proceeds of crime or money being laundered not much to worry about I think.